Korean AVing has published a couple photos of what I believe is the Gaze Communicator project from the German Fraunhofer Institute.

The photos are from the CeBit 2006. The Gaze Communicator features new technology that will replace mouse and keyboard by an adaptive face- and eye-tracking system.

Using a camera, the user’s head is recorded continuously. Segmentation and face detection algorithms analyze the images and detect the position of the users face and eyes. A pattern recognition algorithm based on Hough transform extracts the shapes that relate to the human eye in order to locate the center of the pupil. Analyzed in real-time, the position of the eye in an incoming image will be interpreted as the reference position of a mouse cursor on the users monitor.
More details about the Gaze Communicator project can be found on the Fraunhofer site.

See also the new gesture interface by GoMonkey.